Channel Marker

Nov 28 2012   6:08PM GMT

Mainstream enterprise adoption of SaaS up dramatically

Heather Clancy Heather Clancy Profile: Heather Clancy

Software as a service (SaaS) is moving beyond early enthusiasts deeper into enterprise accounts but adoption rates differ dramatically depending on the region, reports Gartner.

The research firm’s latest survey of SaaS trends shows that 71 percent of the businesses now using applications delivered as a service have been doing so for less than three years, which signals wider mainstream adoption, according to Gartner’s report, “Survey Analysis: Buyers Tell Us About SaaS and Cloud Adoption Through 2014.”

Said Charles Eschinger, research vice president at Gartner: “Initial concerns about security, response time and service availability have diminished for many organizations as SaaS business and computing models have matured and adoption has become more widespread.”

The survey covers 556 organizations from 10 countries in North and South America, Europe and Asia Pacific.

Brazil had the largest number of new SaaS users, according to the survey, and growth is accelerating with more than 80 percent of respondents from that region expecting to devote more of their application budgets to SaaS over the next two years.

The majority of the SaaS deployments is now driven by net new implementations or replacements of existing on-premise applications, reports Gartner. But there are marked regional differences.

In the United States, for example, more SaaS installations are replacing existing on-premise, legacy applications. In Asia Pacific countries, on the other hand, more SaaS contract are for net-new applications since the penetration of on-premise enterprise software isn’t as deep.

There is one common theme: SaaS investments will increase in all four regions over the next two years. Overall, 77 percent of the survey respondents anticipate increased spending, while 17 percent plan to keep spending the same.

Most of the net-new deployments were focused on CRM and enterprise content management.

Perhaps more interesting for technology solution providers that are still focused on deploying on-premise applications, however, are what sorts of software is being replaced most often. The focus there is on supply chain management, Web conferencing, collaboration platforms, and social business software.

The biggest takeaway? Businesses are generally more receptive to SaaS conversations.

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